latest report Self-Directed Investors: Implications for Wealth Managers draws
on our 2015 Global Wealth Managers Survey to analyze the independent HNW
investors’ landscape across the globe. It sizes the market for self-directed
investments and examines the key drivers behind wealthy individuals’ decision
to build their portfolios without professional advice. The competitive
landscape and product environment are also analyzed.
advisory and discretionary asset management services are more profitable for
wealth managers, they cannot afford to ignore the needs of clients who
self-direct. Globally over a quarter of high net worth (HNW) wealth is invested
independently of wealth managers’ mandates. Understanding the factors driving
the demand for execution-only platforms will help private banks and wealth
management firms engage effectively with clients who wish to retain exclusive
control over a portion of their wealth.
execution-only mandates constitute 19.1% of total HNW assets held with wealth
managers. Although clients in developing economies tend to prefer unadvised
services, the US represents the biggest market opportunity in terms of
- HNW clients
under 35 years old and first-generation entrepreneurs are most likely to self-direct
encourages HNW investors to look for alternatives to the services of wealth
managers in mature economies, but in developing markets a pure preference to
run simple portfolios independently is the key driver.
- Advances in
digital technology are contributing to the growing interest in DIY investments,
particularly in Asia Pacific.
brokerage business models are being challenged by the growing number of
platforms offering automated investment solutions (robo-advisors).
increasing popularity of exchange-traded funds (ETFs) and peer-to-peer (P2P)
lending platforms has started to affect the business of wealth managers.
Specifically, the report:
the value of HNW and mass affluent assets invested outside discretionary and
- Analyzes the
demographics of DIY investors
drivers for self-directed investments between developed and emerged economies
client targeting strategies of brokerages and robo-advisors
what investment products are preferred by self-directed HNW clients and how
wealth managers can use them to expand their offerings